William Ransom & Son plc plans Site Sale: Reorganisation should yield cash and operational cost benefits

London (OTS) - William Ransom, the natural healthcare company,
today confirmed that it is considering the sale of its valuable
Hitchin town centre site for residential development. A
reorganisation would produce operational savings as pharmaceutical
manufacture is transferred to the company's Witham site. Cash from
the site sale would be used for the continued growth of the consumer
healthcare division as well as for investment in the expansion of the
Witham plant and the creation of a state-of-the-art botanical
extraction facility in the Hitchin area.

William Ransom & Son PLC, the Hitchin-based natural healthcare
company, today announced that it is considering selling its 4.3 acre
Hitchin town centre site. Under the plans, pharmaceutical
manufacturing would be transferred to the company's site in Witham,
Essex, while some of the site sale proceeds would be invested in a
new botanical extraction plant in the Hitchin area. The company also
anticipates that a sale would realise cash necessary for further
acquisitions for its consumer healthcare division.

Overhead reduction and the simplification of the company's
traditional business are expected to produce considerable operating
efficiencies. The new state-of-the-art botanical extraction facility
planned for the Hitchin area will be compliant with impending changes
in regulatory standards. It should allow the
company to maintain its leading position in the supply of plant
extracts to customers in the food, drink and healthcare industries,
for which it has been renowned worldwide since its establishment in
1846.

The proposals, if confirmed, would mark an important milestone in
the transformation of Ransom in a process which began three years
ago. As well as a new Board and senior management team and a move to
AIM, the company has adopted and begun implementation of its strategy
to become a natural consumer healthcare business through the
acquisition and development - using its botanical expertise
- of healthcare brands from multi-nationals and private companies.
Acquisitions from Roche, Boehringer Ingelheim and of Cariad, a
private company, have been made so far.

Consultation with employees on the proposals has begun and, if
they are confirmed, it is intended that the level of redundancies at
Hitchin would be kept to a minimum by offering as many staff as
possible the opportunity to transfer to Witham or to the new
extraction facility. The company, nevertheless, expects that the
overall headcount of the company would reduce from 190 to 116 as a
result of the efficiencies of concentrating pharmaceutical
manufacturing at one location. The company would aim to vacate its
historic town centre site by the end of 2004.

Ransom believes that its site would be most appropriate for
residential development. With the advice of property agents FPD
Savills, a shortlist of major developers and housebuilders has been
invited to submit proposals for schemes which respect the importance
of a large site in Hitchin's historic town centre. In the event that
the offers received are regarded as unsatisfactory by
the company, the Board intends to submit its own planning application
for residential development of the site.

Trading Update

Profit performance of the Consumer Healthcare Division ('CHD') has
been satisfactory so far this year, with a small overall decrease in
branded sales off-set by improved cost control. The brands Metanium
and Pavacol-D are performing well and it is anticipated that Radian
B's UK sales will, having been slightly affected by excessive
competitor advertising spend over the last six months, be improved by
the on-going new product development programme, which has already
yielded new listings in some national accounts. Cariad's streamlined
product range has delivered a good level of profitability. CHD, which
is unlikely to be affected by the proposed site sale, is actively
seeking further complementary acquisitions.

In the Pharmaceuticals and Natural Extracts Division, the company
has already begun to take operational decisions to facilitate its
site move, should the move be confirmed. In particular, it has
terminated some contract and other business not earmarked for
transfer to its Witham site. This has meant that sales in the first
six months, which otherwise would have been ahead of last year, are
approximately at the same levels as in the period to 30 September
2002. Furthermore, in the event that the reorganisation plans are
confirmed, financial results for the years ending 31 March 2004 and
31 March 2005 would be materially affected by a number of factors
associated with moving. These include moving
costs themselves, costs and loss of contribution associated with
discontinuation of many smaller and unprofitable lines and
exceptional items relating to the realisation of the value of the
company's freehold site. Ransom would of course seek to keep the
effects of the relocation on its continuing business to a minimum and
has undertaken extensive planning to ensure customer supplies would
not be interrupted.

Timothy Dye, Chairman and Chief Executive said, "The decision to
recommend a move from our base of over 150 years has not been an easy
one to make. Nevertheless, I am convinced that it is the right thing
to do and we will ensure that redundancies are kept to a minimum. As
well as realising cash for potential acquisitions, the business move
would allow us to reduce overheads significantly
by concentration of our pharmaceutical manufacturing business on one
site. We would also be able to retain our Hitchin presence by the
creation of a new state-of-the-art botanical extraction facility
which is compliant with impending regulatory change."

In September, the company announced the appointment of two new
non-executive directors when Jacqueline Paterson, Head of Beauty and
Lingerie at Marks & Spencer, and William Nabarro, a senior corporate
financier, joined the Board.

Ransom's objective is to establish itself as the UK's leading
natural consumer healthcare company. The company believes that it is
in a strong position to continue to acquire and grow healthcare
brands that no longer fit within enlarged multi-national
pharmaceutical businesses. Sales for the year to 31 March 2003 grew
by 38% to UK Pound 14.725m, returning the company to a profit before
goodwill amortisation of UK Pound 0.563m. Interim results for the 6
months to 30 September 2003 are expected in mid-November.

This information is provided by RNS
The company news service from the London Stock Exchange

ots Originaltext: William Ransom & Son plc

Rückfragehinweis:
Timothy Dye
Chief Executive
William Ransom & Son plc
Tel.: 01462 437615

Robert Howard
Finance Director
William Ransom & Son plc
Tel.: 01462 437615

Ronel Lehmann
Lehmann Communications plc
Tel.: 0207 266 3020

OTS-ORIGINALTEXT UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS | EUN

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